The Cologne office letting market showed a significant decrease in momentum in the second quarter of 2026. Cushman & Wakefield recorded take-up of approximately 28,300 sq m, which was 36 per cent below the figure for the same quarter last year. The first half of 2026 concluded with cumulative take-up of 72,600 sq m. This figure marks a 35 per cent decline compared to the first half of the previous year, when 111,700 sq m were registered. Even in a long-term context, the half-year result is significantly below average values: the 5-year average was undershot by 41 per cent, and the 10-year average by 46 per cent.
The primary reason for the subdued development in the second quarter was the absence of medium and large-volume transactions. While the market was still supported by several larger lettings the year before, the second quarter of 2026 was characterised by small-scale transactions. No deals over 5,000 sq m were recorded, and lettings over 1,000 sq m remained the exception. Mina Dadgostar, Head of Office Agency Cologne at Cushman & Wakefield, pointed out that users are currently scrutinising space decisions very carefully, especially for larger requirements. This implies that decision-making processes are extended and more influenced by economic uncertainties and internal space strategies.
The only significant deals of the current year stem from the first quarter. These include Deutsche Bank's letting of approximately 7,000 sq m in the Dominium on Tunisstraße, which remains the only deal above 5,000 sq m in 2026. Additionally, several lettings in the segment between 1,000 sq m and 5,000 sq m were recorded in the first half of the year, including a transaction for Katholino in Josef-Lammerting-Allee for approximately 2,100 sq m, brokered by Cushman & Wakefield.
The prime rent in the Cologne office market remained stable at EUR 33.00/sq m in the second quarter. This corresponded to a slight decrease of 2.9 per cent or EUR 1.00/sq m year-on-year. This trend is less due to general price pressure and more to the dampened transaction dynamic in high-priced locations. The average rent recorded a stable value of EUR 20.60/sq m at the end of the second quarter, which equates to a marginal increase of 1.0 per cent or EUR 0.20/sq m year-on-year. The rental development shows that the subdued transaction dynamic has not yet caused a widespread decline in rents. However, the current market environment lacks large-volume, high-priced transactions that could further increase prime and average rents. Utilisation decisions are currently not primarily focused on prestigious top-tier spaces, but rather on well-connected, efficient and flexibly usable office spaces.
The vacancy rate in the Cologne office market continued its upward trend in the second quarter of 2026, reaching 5.7 per cent at the end of the quarter. This represents an increase of 10 basis points compared to the previous quarter. The absolute vacancy volume amounted to approximately 489,850 sq m, which corresponds to an increase of 0.4 percentage points compared to the same quarter last year. Despite this development, vacancy in Cologne remains moderate compared to other top 5 markets, but shows a clear upward trend. The reasons for this are changing space requirements of users, caused by hybrid working models, a focus on space efficiency, and a more critical evaluation of existing office spaces. No rapid recovery is predicted for the second half of the year, but a selective revival is considered possible, depending on the realisation of existing larger requirements. The market has a solid user base; however, the short-term environment is characterised by restraint, longer decision-making processes, and a focus on efficient spaces.
